The Housing Development Advocacy Network (HDAN), yesterday, lamented the Federal Government’s allocation of N88.14 billion to the Federal Ministry of Housing and Urban Development in the 2025 budget, describing it as a clear indication that affordable housing for poor citizens is not on the priority list of the government

In a statement, HDAN Executive Director, Festus Adebayo, expressed disappointment, stating that the budget allocation is grossly inadequate to tackle the country’s estimated 28 million-unit housing shortfall.

He noted that such insufficient funding would undermine the government’s Renewed Hope Agenda, which aims to deliver 20,000 housing units yearly.

He, therefore, called for a substantial budgetary increase to N500 billion and above, citing the average cost of N6 million to N10 million per housing unit required to meet the presidential deliverable.

He, however, urged President Bola Tinubu to show greater commitment to the housing sector by addressing the poor allocation in the budget.

“The government needs to match its talk on housing with action. The renewed hope for housing will not be realised if the Ministry of Housing continues to be starved of funds,” he warned, adding that the reduced budget down from N99 billion last year to N88 billion this year does not reflect a serious approach to tackling Nigeria’s housing crisis.

Adebayo further criticised the lack of provision for key initiatives like the Family Homes Fund Limited, Federal Mortgage Bank of Nigeria, and Nigerian Mortgage Refinance Company, calling for a more conducive environment for them to thrive, as he commended the government’s establishment of the MOFI Real Estate Investment Fund, expected to be launched in 2025.

The HDAN executive director emphasised the need for the government’s intervention in developing local building materials and stabilising foreign exchange rates to curb escalating construction costs.

Adebayo, while calling on the National Assembly to urgently intervene and ensure an increase in the allocation for housing and urban development in the 2025 budget while the proposal is still under review, said that this critical adjustment, before the budget’s final passage, would demonstrate a strong legislative commitment to addressing housing deficit.

He recommended alternative approaches, including rental housing schemes with ownership options, partially completed housing units to lower initial costs, and site-and-services schemes that provide infrastructure, as well as enable citizens to build at their own pace.

He also stressed the importance of engaging professionals in policy implementation and maintaining public buildings to ensure sustainability.